The Life Insurance Corporation of India (LIC) announced earlier this week that it has initiated a special two-month campaign that is aimed at the revival of individual lapsed policies. The campaign, which was dubbed, the ‘Special Revival Campaign’ was launched effective from August 23 and would conclude on October 22, 2021, as per the press release made by the financial entity. As part of this campaign, LIC would be offering a concession on the late fees as an incentive for its policyholders in an attempt to revive their insurance policies.
Under the provisions of the campaign, policies that are of a specific eligible plan can be revived within five years from the date of the first unpaid premium. However, this will be subject to certain terms and policies according to the release. LIC has come up with this Special Revival Campaign in light of the ‘prevailing circumstances’, allowing unique concessions to be offered in late fee for Term Assurance as well as High-Risk Plans, depending on the premium paid, said the lender.
In terms of qualifications, eligible Health and Micro Insurance would also qualify for the concessions of the scheme. Also eligible for the revival campaign, are the policies which are in a lapsed condition during the premium payment term, as well as those that have not completed policy terms.
“In view of the prevailing circumstances, concessions are being offered in late fee for other than Term Assurance and High-Risk Plans, depending on the total premiums paid. There are no concessions on medical requirements,” said LIC in a statement.
LIC added by stating, “The campaign is launched for the benefit of those policyholders whose policies lapsed as they were not able to pay premiums on time due to unavoidable circumstances. It always makes better sense to revive an old policy to restore insurance cover. LIC values its Policyholders and their desire to stay protected. This campaign is a good opportunity for LIC’s Policyholders to revive their policies and restore life cover and ensure financial security for their family.”
Concessions Offered Under the Special Revival Campaign
1) At the lower end of things, LIC would offer you a total receivable premium of Rs 100,000 that comes with a 20 per cent late fee concession. However, the maximum concession allowed cannot exceed Rs 20,000.
2) In the mid-tier range, the campaign offers a total receivable premium of Rs 100,001 to Rs 300,000. This comes with a late concession fee of 25 per cent. This also has a maximum concession limit of Rs 2,500 which cannot be exceeded.
3) At the upper end, LIC would offer a total receivable premium of Rs 3 lakh and above at a 30 per cent concession rate in late fees. Again, the concession amount cannot exceed Rs 3,000.
These types of new and targeted policy campaigns are not a new occurrence for LIC. Last month, the Insurance provider had introduced LIC’s Arogya Rakshak policy, which was a non-linked, non-participating policy with regular premiums, as well as individual and health insurance policies. It provided fixed health benefits insurance coverage against specific health risks. With this policy the individual could insure themselves, their spouse, children and parents under one single policy. It was made available for principal Insured/spouse/parents aged 18 years to 65 years and children of age 91 days to 20 years. It also had a cover period for spouses and parents up to the age of 80 years and for children up to the age of 25 years.